Canadian pension fund snaps up lottery firm Camelot for £389m

NATIONAL Lottery operator Camelot has been sold to a Canadian pension fund for about 389 million.

Camelot said last night it had been informed by its shareholders – Cadbury Holdings, De La Rue Holdings, Fujitsu Services, Royal Mail Enterprises and Thales Electronics – that they had agreed to sell their shareholdings in the firm to Ontario Teachers’ Pension Plan, known as Teachers.

The National Lottery Commission, Camelot’s regulator, will have to approve the sale before it can be completed.

Camelot chief executive Dianne Thompson said: “We welcome Teachers’ commitment to the National Lottery’s ongoing success, and look forward to the opportunity of working with them to continue our progress in developing the business and delivering even more money for the good causes.”

Lee Sienna, the pension fund’s vice-president of long-term equities, said:

“Teachers’ takes a long-term view of its investments, providing an environment of stability, commitment and continuity in the businesses it invests in, and is committed to supporting Camelot’s management team in delivering its plans for the business.

“We maintain the highest standards in relation to management and governance, which we see as particularly important in the case of Camelot, given its unique role in raising money for the good causes.”

Teachers’ said it had a successful history of direct investments in UK companies, including Acorn Care and Education, Bristol International Airport, Birmingham Airport, Scotia Gas Networks, InterGen and Thomas More Square Estate. It owns about 26.7 per cent of Northumbrian Water.

The pension fund, which has offices in London, Toronto, and New York, is an independent organisation responsible for investing the fund and administering the pensions of 289,000 active and retired teachers in Ontario.

Wayne Kozun, Teachers’ senior vice-president for public equities, said: “We look forward to partnering with management to realise the full potential of the Camelot business over the remaining licence term and into the future.”

Teachers’ long-term equities division is focused on direct investments that have steady cash flow and growth potential.

Camelot began its third National Lottery licence in February last year. It runs for ten years with a possible extension for a further five years.